Calculating Mileage Reimbursement Step by Step

Mileage reimbursement is calculated by multiplying the number of business miles driven by an agreed-upon rate — usually the IRS standard rate, which for 2026 is 72.5 cents per mile.

Step 1: Count only business miles

Business miles include travel between job sites, to client meetings, and to temporary work locations. They do NOT include commuting miles — the drive from your home to your regular office is personal travel and is not reimbursable.

Step 2: Apply the rate

• IRS standard rate 2026: 72.5 cents per mile for business.
• Example: 80 miles × $0.725 = $58.00.
• If your employer uses a different rate, multiply by that rate instead.

Step 3: Round and submit with a log

Round the total to two decimal places and attach a mileage log showing: the date, starting point, ending point, business purpose, and total miles for each trip. A log is required for the reimbursement to be tax-free under IRS accountable plan rules.

Step 4: Total multi-leg trips correctly

If you drive from the office to Client A, then to Client B, then back, count each leg separately and add them. PerDiemWise's mileage calculator handles multi-leg totals automatically, saving you the arithmetic.

What if I'm not reimbursed?

If your employer does not reimburse business mileage, self-employed workers can deduct it on Schedule C. Employees who are not reimbursed generally cannot deduct it on federal returns (the deduction for unreimbursed employee expenses is suspended for most filers).